Accounting Information Systems Alignment and SMEs Performance: A Literature Review

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1 2015, Vol. 4(2), pp ISSN Accounting Information Systems Alignment and Performance: A Literature Review Dekeng Setyo Budiarto * Faculty of Economics, PGRI University, Indonesia Rahmawati M. Agung Prabowo Faculty of Economics and Business, Sebelas Maret University, Indonesia This paper explored the empirical research investigating the relationship between Accounting Information Systems (AIS) alignment and Small and Medium Enterprises (). Literature shows that AIS alignment is influenced by organizational characteristics, individual characteristics and situational factors which affect. The associate between AIS alignment and firm is also discussed in this paper. This paper explores the motivation and contribution of previous researches to identify the gaps for the future studies. Keywords: Accounting information systems, alignment, small and medium enterprises, firm, organizational characteristics, individual characteristics JEL: L86, M15, M41 This paper investigates the empirical studies examining the relationship between Accounting Information Systems (AIS) alignment and in Small and Medium Enterprises (). Hussin et al., (2002) found that there is a relationship among owner commitment, information technology (IT) sophistication, external IT expertise, and information systems (IS) alignment, while Ismail and King (2006) found that information systems alignment has a significant impact on firm. This paper discusses previous researches that explain and the factors influencing of. Previous studies have attempted to explain the relationship between AIS and (Boulianne, 2007; Francalanci and Morabito, Manuscript received January 30, 2015; revised April 25, 2015; accepted May 10, The Authors; CC BY-NC; Licensee IJMESS *Corresponding author: dekengsb@gmail.com 2008). Hussin et al., (2002) and, Ismail and King (2007) explain determinant of information systems implementation such as IT sophistication, owner commitment, and IT strategy on AIS alignment in. The studies on technological implementation in are more interesting than those in large firms. Although research on IT and has been conducted in large firms, it is important for small firms, since the implementation of technology will improve small firm (Grande et al., 2010). Both small firms and large firms have implemented AIS (Ismail and King, 2006). However, the development of IT in large firms cannot be equally applied to small firms (Thong, 1999). The writer included a list of previous researches investigating AIS and in the Appendix-I of this paper. Some researchers have attempted to associate AIS with

2 59 Budiarto et al.. The relationship between AIS sophistication and firm was investigated by Burca et al., (2006); studies present a positive relationship among level of technology (Choe, 2002); AIS strategy (Boulianne, 2007; Tuanmat and Smith, 2011), and IT investment (Dibrell et al., 2008). Previous research has found the indirect effect of IS on. Burca et al., (2006) posited that the relationship between service practices and service is moderated by IT sophistication. Dibrell et al. (2008) suggested that the investment of IT has the moderating effect between the relationship of innovation and. Naranjo (2004) stated that there is an indirect effect of sophisticated AIS on, acting through a prospector strategy. Moreover, several studies identify IT alignment (Hussin et al., 2002) and by using different methods and variables in the future. This paper has two purposes. First, it attempts to document empirical researches on AIS. Second, it aims to identify research gap related to as a basis of an empirical future research. To achieve this purpose, the first section of this paper will explain previous researches conducted in different countries, different measurements and methods; the second section will discuss several factors that influence AIS alignment; the mapping of research findings would be explained in the last section. This paper is expected to provide input to the owners in order to identify factors that affect technology implementation. owners should be aware that the implementation of appropriate information technology will improve which will be resulted in competitive relationship between IT alignment and firm (Ismail and King 2005; 2006). advantage. LITERATURE REVIEW The main problems faced by small firms are the lack of capital and technological obsolescence (Malaranggeng, 2009), limited financial resources, management information (Levy, et al., 2011), limited scale economies and management s IT-oriented behaviour (Francalanci and Morabito, 2008; Marriott and Marriott, 2000), and lack of funds to improve skills (Delone, 1988). Based on explanation above, in general, this paper will contribute to the academic literature by finding the relationship, direct or indirect, between the antecedent factors of IS implementation and. This paper will direct researchers to examine the results of previous research that can be examined IT in Different Countries This section would discuss about previous finding in many developing countries in context of AIS implementation and. In general, AIS implementation is determined by several factors such as level of strategy, owner commitment, and external IT expertise, which have an effect on firm. However, several studies have attempted to explain the effect of IT/AIS alignment on. Thong (1999) studies 166 in Singapore. The study developed an integrated model of IS implementation in. The model uses several factors which affect IS adoption such as decision

3 60 maker characteristic, Information System characteristic, organizational characteristic, and environmental characteristics. The result shows that with certain CEO characteristics (innovativeness and level of IS knowledge), innovation characteristics (relative advantage, compatibility, and complexity of IS), and organizational characteristics (business size and level of employee s knowledge in IS) are more likely to adopt IS. The study conducted by Hussin et al. (2002) focused on the alignment of business strategy and IT strategy among 256 managers of small manufacturing firms in the UK. A questionnaire survey was used to gather data to test the hypotheses. The study indicates that IT alignment is related to the firm s level of IT maturity and the level of CEO s knowledge of software, but it does not seem to be linked to the firm s sources of external IT expertise. Thus, more mature firms are more likely to be able to rely on their own knowledge to fix IT for their needs, especially as engaging outside expert is fraught with problems. Similarly, Sousa et al. (2006) analysed measurement in 52 in UK. The data collected from the survey suggest that there are no significant differences in the use of measurement in which engage in industry and service sector. Training of employee and difficulty of defining new measurement were highlighted as the most important barriers to the adoption of the new measurement. The evidence found in Malaysia by Ismail and King (2005; 2006; 2007) reveals that the fit between the requirement for accounting information systems and the capacity of accounting information systems in Malaysian was high. This suggests that aligning information processing capacity with perceived information requirements has a contribution in improving the of in developing economies. Therefore, government intervention is crucial to accelerate the strategic use of IT, therefore really need to implement the informational technology to add firm value. In addition, the different research setting between IT and organizational in Malaysian has been documented by Tuanmat and Smith (2011) who examined the effect of competitive environment, information technology, and organizational strategy on organizational. Using contingency approach, the study found that have changed their business strategy and IT strategy, which has affected their organizational. A study conducted by Boulianne (2007) stated that match between type of strategy and AIS is associated with higher in Canadian. The study formulates three types of strategy variables; defender, prospector and analyser. Matching this strategy and AIS will affect firm. The results of the study show that managers who apply the prospector and defender strategy need external, nonfinancial, and future-oriented information for decision making. The adoption of technology in Japan was investigated by Isobe et al. (2008). The purpose of the study was to investigate the relationship between technological capabilities and firm. The study divides

4 61 Budiarto et al. technological capabilities into two types: refinement capability, which improves the existing asset portfolio; and reconfiguration capability, which involves the restructuring of the asset portfolio. The results of an analysis of 302 in Japan suggest that reconfiguration capability is more positively related to firm than to refinement capability. Another research using Canadian firms sample has been presented by Croteau and Raymond (2004). The study evaluates the business outcome in aligning an organization s IT competencies with its strategic competencies. The strategic competencies include components such as shared vision, cooperation, empowerment, and innovation, whereas IT competencies comprise connectivity, flexibility, and technological scanning. A questionnaire was addressed to 104 CEO of the firms in Canada. The results confirm that strategic and IT competencies alignment significantly enhances perceived business. The concept of competencies alignment implies that there is a strategic link between strategy and IT competencies with organizational requirements and organizational development. Levy et al. (2011) employed a qualitative and quantitative analysis on the sample of 27 CEOs in. The study seeks to understand how strategic IS alignment takes place in. The results of the study are: first, that benefit realisation depends on alignment between IS and business strategy; second, that IS investment is frequently limited to supporting operation and transaction; third, that organizations with more sophisticated IS tend to perform less successfully than those with less complex systems, the greatest alignment and highest are reported for systems to improve efficiency. A study on IS implementation in India has been conducted by Sharma and Bhagwat (2003). They measured and evaluated IS from six perspectives; operational efficiency of IS function, downtime of IS, responsiveness of IS, timeliness of information, accuracy of information, and overall competitive position. This cross-sectional survey was based on a questionnaires and personal interviews of 147 Indian. The results suggest that IS measurement framework can be the foundation for strategic growth in the globalization. The proper management of IS and its measurement are necessary for that want to remain competitive in global economy. IT implementation in of Spain has been documented by Estebanez et al. (2010). They report that the manufacturing sector has high level of short term IT implementation, while the service sector use IT intensively and is very interested in sophisticated IT. The research studied the sample of 632 companies selected from the Iberian balance sheets Analysis database. From the total number of firms replied to the survey, 96 percent were medium-sized and the remaining 4 percent were small businesses. Furthermore, the study found that new accounting standard implementation and IT knowledge are the factors that align strategies with organizational culture towards continuous improvement. Another study in Spain,

5 62 documented by Naranjo (2004), found a relationship between sophistication of IS and hospital. The relationship was explored using data collected from 112 CEOs in 218 hospitals. The finding proved the indirect effect of sophisticated AIS on, acting through a prospector strategy. The result of above mentioned studies showed that IS has a significant relation with. However, according to the information processing (IP) theory (Galbraith, 1973), IS processing capacity must match with information requirements. The Fit between information processing capacities with information requirements will affect (Ismail and King, 2006). Based on the IP theory and the finding of previous research, this paper proposes to correlate several factors such as the information systems characteristic (Thong, 1999), type of industry (Sousa et al., 2006) and type of strategy (Bouliane, 2007) with information system implementation. To explain the relationship between the types of industry, the type of strategy with non-financial through the implementation of technology, contingency theory can be used. METHODOLOGY The effect of AIS implementation on organizational has been studied by several researchers using different analytical methods. Thong (1999) tested the hypothesis how to adopt IS by using discriminant analysis. Discriminant analysis is a technique to study the differences between two groups (IS adoption and non-is adoption). Furthermore, Hussin et al. (2002) examined the IT alignment with factorial analysis. Another study, Soudani (2012) used regression analysis to establish the relationship between AIS and financial. However, Naranjo (2004) used two ways ANOVA analysis to match the dominant strategy, dominant AIS sophistication design with organizational. Estebanez et al. (2010) used chi-square statistic to determine differences in the use of IT between the engaged in manufacturing and those in service sectors. While Tuanmat and Smith (2011) used different statistical analysis in which Structural Equation Modelling (SEM) was used as the statistical technique to test the hypothesized model in their study. This paper proposes to examine the various factors that affect technology implementation such as IS characteristic, types of strategy, types of industry with AIS alignment and the direct effect of AIS alignment on non-financial. Indirect effect or mediation relationship between types of strategy, types of industry on AIS implementation and non-financial can be analysed with structural equation modelling. The effect between each variable in AIS implementation and is still interesting topic for future research. Measurement Thong (1999) has developed an integrated model of IS adoption. In his research, IS adoption has been defined as using computer hardware and software application to support operation. He used 5 point Likert-type questions to measure the implementation of IS. Other studies like

6 63 Budiarto et al. Estebanez et al. (2010) and Soudani (2012) also used questionnaire to measure AIS implementation with 5 point Likert-scale. The measurement includes financial reporting process, data storage, data processing quality, and manager s knowledge of new IT adoption. Other researchers also use questionnaire to collect data (Hussin et al., 2002; Ismail and King, 2005, 2006; Bouliane, 2007; Isobe et al., 2008). Moreover, Hussin et al., (2002) proposed the moderation model to measure IT alignment. He argued that high degree of alignment means high multiplication score between the IT strategy items ratings and the business strategy items ratings. Similarly, Ismail and King (2005, 2007) adopted the moderation approach to measure the fit between AIS requirement and AIS capacity. Fit relies on the close correspondence between 19 AIS requirement items and 19 AIS capacity items. According to Chenhall and Morris (1986), the design of AIS can be classified into 4 dimensions, namely scope, aggregation, integration, and timeliness. Furthermore, Ismail and King (2006) suggested different method to measure AIS alignment. In their study, the fit between AIS requirement and AIS capacity (referred to AIS alignment) is explored as a construct using the matching approach. FACTORS AFFECTING IS IMPLEMENTATION Some researchers stated that the implementation of IS can be determined by several independent factors such as; sophistication of IS, owner commitment to IS, external IT expertise, and level of IS. This section would explain factor affecting the implementation of IS as suggested in the previous researches. Sophistication of IS Naranjo (2004) suggested that organizations design sophisticated AIS to meet the strategic goals and enhance their. In his research, the design of sophisticated AIS was measured by 4 dimensions; scope, timeliness, aggregation, and integration. Burca et al. (2006) found that IT sophistication is a moderating variable that affects the relationship between service and. They suggest that a firm needs sophisticated technology due to: first, a business requires strong scientific technical base; second, new technologies can quickly make existing technology become obsolete. Estebanez et al. (2010) studied IT adoption in. The study found that in service sector use IT intensively and also very interested in IT sophistication. Al-Egab and Ismail (2011) stated that IS design is determined by environmental conditions. The results of the study revealed a significant and positive relationship between IT sophistication and AIS design. The sophisticated technology will provide a sufficient quantity of information for accountant; it gives information that can be used when designing AIS. Organizational Characteristics Literature shows that organizational characteristics also influence the implementation of technology (Thong, 1999). Thong included business size, competitive environment, and information intensity, all of which are important factors that affect IT adoption in small businesses. Ismail and King (2007) tested the effect of IT adoption in small and large firms. The results showed that there are significant differences between large and small firms in the

7 64 implementation of technology. Moreover, another research (Tuanmat and Smith, 2011) found that in a changing environment, market becomes more competitive, and small firms should invest in IT to compete in globalization environment. Thong (1999) argued that businesses in different sectors have different information processing needs, and those in less information intensive sectors are more likely to adopt IT than those in more information intensive sectors. Business Strategy Al-Egab and Ismail (2011) revealed that business strategy (consists of cost leadership and innovative differentiation) has a significant influence on AIS design. A small firm needs competitive advantage by adopting cost leadership strategy to know whether the features are acceptable to organization or IT team to avoid inconsistency in the next business process. However, similar to cost leadership strategy, the innovation differentiation strategy can only be planned and implemented effectively via sophisticated AIS design. Levy et al. (2011) stated that to achieve the efficiency, need an IT strategy that is aligned to their business strategy. Alignment between IT strategy and business strategy will support their operation and transaction. Organizations with more sophisticated IT tend to perform their business less successfully than those with less complex systems. The efficiency would be achieved if the firms have highest alignment and good. Tuanmat and Smith (2011) used strategy as a determinant factor that affects. In an uncertain environment, where markets become more competitive, should adopt strategies and consider investment in IT to deal with a variety of customers. Organizations should change their strategy to accommodate the change in environmental factors. The success in matching the strategy with the environment can enhance an organization s. Owner Commitment Delone (1988) argued that the owner of a firm is the key to the IT implementation. In a firm where the owner is familiar with, and involved in IT, the IT implementation will be more successful. Thong (1999) showed that one of the main factors contributing to the adoption of IS is owner s knowledge of IT. In order to survive, owners need to update accounting information for decision making accurately and timely. The adoption of accounting information would ensure proper accounting practices as good accounting practices have some implications for SME managers (Lohman, 2000; Amidu et al., 2011). Chu (2009) reported that most are family firms in his research sample. The which are owned by family members play significant role in technology innovation than non-family owned firms. In small firms, the owners will be more responsible for the development of information and technology to improve organizational. External IT Expertise Thong (1995) argued that the success of IT implementation is most likely to occur when external IT experts work as a team with senior managers to integrate information. This cooperation can improve business efficiency, increase return on investment, and increase

8 65 Budiarto et al. business (Woznica and Healy, 2009). Another finding indicates that external expertise is not associated with IT success (Delone, 1988). Small firms in Ghana usually process financial information by chartering accountants to handle their accounting information for management decision (Amidu et al., 2011). Hence, technical support, training, and harmonious working relationship with consultants can reduce the risk of IT failure in small businesses. AIS Implementation The results of previous research suggest that AIS can affect the organizational. Soudani, (2012) who conducted a study in Dubai, found that AIS affects financial. The study collected the data through questionnaire from 74 firms as per listed companies at Dubai Financial Market (DFM) which is a subset of one of the forty ministries and autonomous agencies led by the federal government of United Arab Emirates. PERFORMANCE MEASUREMENT Various studies have attempted to explain the of in the two approaches, financial and non-financial (Delen et al., 2013). This section will describe previous studies using both financial and non-financial approaches. Financial Performance Several studies used financial measurements to demonstrate the effectiveness of IT implementation for organizational. One of the studies using financial as measurement is Soudani (2012) who used ROA, ROE, debt in capital structure, left over, variable cost, and raw-material to measure firm. In Malaysia, Ismail and King (2005; 2006) used long term profitability, availability of financial resources, and sales growth to measure the financial of a firm. Boulianne (2007) stated that business unit is represented by three indicators: return on assets, net profit margin, and revenue growth. Burca et al., (2006) used ROI and earnings before tax to measure the financial of a firm. Non-financial Performance Non-financial measurement is more appropriate than financial. This section will explain studies that use non-financial measurement in. According to Miller (1992), Bledsoe (1997), Abernethy and Lilis (1995), and Choe (2002) non-financial provides various strategic benefits such as quality improvement and shortens time needed in delivery. Tuanmat and Smith (2011) used non-financial to measure organizational outcome such as product availability, product quality, and sales service and support. Sousa et al. (2006) used productivity, customer satisfaction, and customer requirement to measure firms. Similarly, Isobe et al. (2008) showed long term indicators such as new product and technological innovations. CONCLUSION This paper discusses previous researches which are related to the factors that might affect the successful implementation of AIS in. It also presents the results of studies that reveal the effect of AIS implementation on.

9 66 The internal validity in previous researches suggested that there are different methods of analysis and measurement of variables related to. Therefore, it can be analysed using a variety of analytical methods and different variable measurement, especially non-financial that is still limited in. Based on the external validity, it can be concluded that the AIS implementation, especially in developing countries, still an interesting topic to be studied. Several findings in previous researches indicate that there is a research gap that seems to be interesting subject for the future discussion. Ismail and King (2007) explain that according to the IP theory, the high alignment of information technology will occur if the information requirement fit with the information capacity. The alignment of IT will improve organisational. Hussin (2002) show that technological characteristic has significant effect on IT alignment. While Choe (2002) stated that alignment of IT have significant effect on non-financial. Future studies could examine the direct relationship between the factors that effect of technology implementation such as technological characteristics, type of industry, and the type of strategy on AIS alignment. Furthermore, future research could examine the direct relationship between the AIS alignment with non-financial. There is an opportunity for researchers to examine the contingency theory to identify the direct or mediation effect between the factors affecting the IS implementation with nonfinancial. Hence, the association between IS alignment and non-financial is still open debated for the future research. REFERENCES Abernethy, MA. & Lillis, AM. (1995). The impact of manufacturing flexibility on management control system design. Accounting, Organizations & Society, 20(4): Amidu, M. Effah, J. & Abor, J. (2011). E-Accounting practices among small & medium enterprises in Ghana. Journal of Management Policy & Practice, 12 (4): Al-Eqab. & Ismail, NA. (2011). Contingency factors and accounting information system design in Jordanian companies. IBIMA business Review, Article ID , Bledsoe, N. L. & Ingram R. W. (1997). Customer satisfaction through evaluation. Journal of Cost Management, Winter, Boulianne, E. (2007). Revisiting fit between AIS design and with the analyser strategic type. International Journal of Accounting Information Systems, 8, 1-6. Burca, S., Fynes, B. & Brannick, T. (2006). The moderating effects of information technology sophistication on services practice and. International Journal of Operations & Production Management, 26(11): Chenhall, R.H. & Morris, D. (1986). The impact of structure, environment and interdependence on the perceived usefulness of management accounting systems. Accounting Review, LXI (1): Choe., J.M. (2002). The organizational learning effect of management accounting information under advanced manufacturing technology. European Journal of Information Systems, 11, Chu, W. (2009). The influence of family ownership on SME : Evidence from public firm in Taiwan. Small Business Economics, 33, Croteau, A.M. & Raymond, L. (2004). Performance outcomes of strategic and IT competencies alignment. Journal of Information Technology, 19, Delone, H.W. (1988). Determinant of success for computer usage in small business. MIS Quarterly, 12(1): Dibrell, C., Davis, P. & Craig, J. (2008). Fuelling innovation through information technology in. Journal of Small Business Management, 46(2): Delen, D., Zaim, H., Kuzey, C. & Zaim, S. (2013). A comparative analysis of machine learning systems for measuring the impact of knowledge management practices. Journal Decision Support systems, 54(2): Eztebanez, R., Grande, E.U. & Colomina, C.M. (2010). Information technology implementation: Evidence in Spanish. International Journal of Accounting & Information Management, 18(1): Francalanci, C. & Morabito, V. (2008). IS integration & business : The mediation effect of organizational absorptive capacity in SMES. Journal of Information Technology, 23, Galbraith, J.R. (1973) Designing complex organisations. Reading: Addison-Wesley Grande, E. Estebanez, E. & Colomina, CM. (2010). The impact of accounting information systems (AIS) on measures: Empirical evidence in Spanish. The International Journal of Digital Accounting Research, 11,

10 67 Budiarto et al. Hussin, H. King, M. & Craig, P. (2002). IT alignment in small firm. European Journal of Information Systems, 11, Ismail, NA. & King, M. (2005). Firm and AIS alignment in Malaysia. International Journal of Accounting Information Systems, 6, Ismail NA, & King, M. (2006). The alignment of accounting and information systems in in Malaysia. Journal of Global Information Technology Management, 9 (3): Ismail, NA. & King, M. (2007). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small Business, 1(1-2): Isobe, T. Makino, S. & Montgomery, DB. (2008). Technological capabilities and firm : The case of small manufacturing firms in Japan. Asia Pacific Journal, 25, Levy, M. Powel, P & Yetton, P. (2011). Contingent dynamics of IS strategic alignment in small & medium sized enterprises. Journal of Systems & Information Technology, 13(2): Lohman, J. M. (2000). The legal and accounting side of managing a small business. Ingrams, 26, 21. Marriot, N. & Marriot, P. (2000). Professional accountants and the development of a management accounting service for small firm; barriers & possibilities. Management Accounting Research, 11, Miller, J.A. (1992). Designing and implementing a new cost management system. Journal of Cost Management, Winter, Malaranggeng, V. (2009). The effect of environment and turnaround strategy on innovation and, Ph.D thesis, Indonesian University. Naranjo, D. (2004). The role of sophisticated accounting system in strategy management. The International Journal of Digital Accounting Research, 4(8): Sharma, M. & Bhagwat, R. (2003). Performance measurements in the implementation of information systems in small and medium sized enterprises: A framework and empirical analysis. Measuring Business Excellence, 10(4): Sousa, S., Elaine, M., Aspinwal, A. & Guimaraes, R. (2006). Performance measures in English small medium enterprises: Survey result. Benchmarking: An International Journal, 13(1): Soudani, S. (2012). The usefulness of accounting information systems for effective organizational. International Journal of Economics and Finance, 4 (5): Thong, J.Y.L. (1995). CEO characteristics, organisational characteristics and information technology adoption in small business. Omega, 23(4): Thong, J.Y.L. (1999). An integrated model of information systems adoption in small business. Journal of Management Information Systems, 15(4): Tuanmat Z. & Smith, M. (2011). The effect of changes in competition, technology and strategy on organizational in small and medium manufacturing companies. Asian Review of Accounting, 19(3): Woznica, J. & Healy, K. (2009). The level of information systems integration in in Irish manufacturing sector. Journal of Small Business and Enterprise Development, 16(1):

11 68 Authors Sample Object Independent variable Al-Eqab, 220 firms Jordanian IT Sophistication, Noor (2011) companies business strategy Burca, Brian, Teresa (2006) Chang, David, Celeste, Wei (2012) 231 owners Ireland 25 outsourcers Outsourcing service provider in Taiwan Choe (2002) 330 firms Korean manufacturi ng firm Croteau, Raymond (2004) Delone (1988) Dibrell, Davis, Craig (2008) 104 CEOs Canadian Firm 93 owners Australian Service practices, IT sophistication, service Capacity of professional skills, capacity of service, capacity of operation, external evaluation Level of technology Strategic competencies, IT competencies, competencies alignment IS level, external programming, CEO knowledge, personal acceptance of computer, controls, longer use of computer, type of computers 397 owners US Innovation, IT investment Dependent variable AIS design Business IT outsourcing service providers Non-financial Business Success of IS adoption Financial, nonfinancial Result Appendix-I 1. Managerial IT sophistication, informational IT sophistication and functional IT sophistication are more important than technological sophistication in influencing AIS design. 2. Cost leadership strategy was found to be more important than innovation differentiation strategy in influencing AIS design. 1. IT sophistication is moderating influence on the relationship between service practices and service. 2. There is positive relationship between service practices and service. 3. There is positive relationship between service and business. 1. The place a high value on the quality of product by outsourcing. 2. Expect new systems to operate smoothly and be compatible with other. 1. Level of technology has positive relationship with non-financial. 2. Although level of technology may be low, moderately large amount of information may be necessary for the improvement of. 1. Strategic competencies and IT competencies has significant impact on competencies alignment. 2. Competencies alignment has significant impact on business. 1. IS level, CEO knowledge, and control have positive relation on success of IS adoption 2. External programing, personal acceptance of computers, longer use of computers, computer training have no significant effect on success of IS adoption 1. Innovation has positive impact the prominence manager place on IT (IT investment). 2. The impact of innovation on is indirect, felt via the mechanism of the importance manager place on IT. 3. IT investment has positive relation to

12 69 Budiarto et al. Appendix-I Authors Sample Object Independent variable Boulianne 88 managers Canadian Strategic, AIS (2007) Estebanez, Elena (2010) Hussin, King, Craig (2002) Ismail, King (2005) Ismail, King (2006) Isobe, Makino, Montgomery (2008) Levy, Powell, Yetton (2011) Naranjo (2004) Salehi, Rostami, Mogadam (2012) 632 owners Spanish 256 owners Malaysian 310 owners Malaysian 310 owners Malaysian IT accounting, number of year using IT, company s knowledge of AIS IT sophisticated, Owner commitment, external IT expertise AIS requirement, AIS capacity AIS requirement, AIS capacity (AIS alignment) 302 owners Japan Refinement capability, reconfiguration capability 27 CEOs Strategic positioning 112 CEOs Spain Hospital 498 Firms Financial managers of Iranian corporation Sophisticated AIS, prospector strategy Accounting Information Systems (AIS) Dependent variable Financial Financial position, business management knowledge of technology, accounting and financial position IT alignment Financial Financial Operational efficiency, strategic Result 1. Prospector strategic and to lesser extent for defender strategic, broad-scope AIS is associated with higher. 2. Information needs of analyzer strategic differ from those defender units 1. Manufacturing sector has a high level of short term IT implementation to deal with accounting and financial issues. 2. The service sector is using IT intensively and is also very interested in sophisticated IT 1. The IT alignment was related to the firm s level of IT maturity and the level of the owner s software knowledge. 2. The IT alignment was not related to the external IT expertise 1. The result indicates that a significant proportion of Malaysian had achieved high. 2. The group of with high AIS alignment had achieved better organizational than firm with low alignment 1. The with highest level of alignment had better 2. Alignment does contribute to firm 1. Refinement capability relates more positively to operational efficiency than does reconfiguration capability. 2. Reconfiguration capability relates more positively to strategic than refinement capability. Alignment IS 1. Benefit realization depends on alignment between IS and business strategy. 2. IS investment is frequently limited to supporting operations and transaction. 3. Organization with more sophisticated IS tend to perform less successfully than those with less complex systems. Organizational Financial 1. AIS Sophisticated has positive relation to prospector strategy. 2. Prospector strategy has positive relation to. 3. There is indirect effect of sophisticated AIS on, acting through a prospector strategy. 1. Utilizing of AIS cause to increase financial. 2. Implementation of AIS leads to better prediction of corporations.

13 70 Authors Sample Object Independent variable Sharma, 147 owners Indian Efficiency of IS Bhagwat function, (2003) competitive position, accuracy of information, downtime of IS, responsiveness of IS, timeliness of Sousa, Elaine, Guimaraes (2006) Soudani (2012) Thong (1999) Tuanmat, Smith (2011) 52 owners English 74 firms Dubai Financial Market 166 CEOs Singapore 182 owners Malaysian IS Financial, quality, training of employees, customer, innovation Accounting information systems (AIS) CEO characteristic, IS characteristic, organizational characteristic, environmental characteristic Competition, manufacturing technology, strategy Dependent variable Performance measurement of IS Perception of the measurement systems Financial, management Likelihood of IS adoption, extent of IS adoption Financial and no financial Result Appendix-I 1. who have implemented IS have achieved a considerable improvement in their operational efficiency of the IS function. 2. who have implemented IS have achieved significant reduction in there is downtime. 3. that have implemented IS have seen certain impact on their competitive position. 1. The model suggest that English report a higher use of measures if they use financial, quality, and training of employees measure 2. The negative relationship associated with the use of customer and innovation measures may not be perceived as measures 1. AIS is very useful and have effect on organizational. 2. There is no relationship between AIS and management. 1. CEO characteristic, IS characteristic, organizational characteristic, are more likely to adopt IS. 2. CEO and innovation characteristic are important determinant of the decision to adopt, they do not affect the extent of IS adoption. 3. The environmental characteristic has no direct effect on small business adoption of IS 1. Competitive environment and manufacturing technology has positive relationship with organizational strategy. 2. Organizational strategy has positive relationship on